A home located at 503 First St. in Jackson's historic district is set to be demolished after a Blackman Township couple bought the property only to deed it to the city after facing $153,000 in renovation costs.(Will Forgrave | MLive.com)

JACKSON,
MI – Buyers beware.

A First Street property in Jackson's historic district that was transformed
from a foreclosed home to a rental property earlier this year is now slated for
demolition at the hands of city officials.

Blackman
Township couple Harry and Karen Gish claim to be out thousands of dollars after
purchasing four Jackson properties at a foreclosure auction in September, only
to quit claim deed three parcels to the city for demolition when faced with
hundreds of thousands in renovation costs.

"We're
never going to buy property in the city again," Karen Gish said of her
experience. "We currently own two rental units in the city, and we're trying to
sell those. We're trying to wash our hands clean of it."

Gish
said he planned to restore the properties and rent them to tenants or sell them
for a profit. The home was a rental for more than 20 years and was abandoned for the last six years, according to Jackson City Manager Patrick Burtch.

The
catalyst for reverting the properties to the city was $153,000 in renovations officials
required at 503 First St. to bring the property to code, after Jackson
officials inspected the home.

In
a Feb. 13 letter from the city of Jackson, officials gave the couple 30 days to
completely restore the structure for about $153,000 or demolish the home for
about $10,000.

City officials have yet to go out for demolition bids,
according to Burtch.

Not
the only historic district property slated for demolition, Jackson Historic
District Commission members are now crying foul.

"We have been riled up by all of the demolitions," historic
district commission Chairwoman Marilyn Guidinger said. "I felt as though we
were getting somewhere with the city, but this feels like a step backward."

Jackson has been designated a CLG by the state for more than
10 years. The designation brings with it grants – to the tune of $48,500 since
2000 – but it also brings with it stipulations, including getting approval from the HDC before homes within a historic district are demolished.

Jackson City Council member Andrew Frounfelker, 5th Ward,
said the city is doing well in only demolishing a fraction of historic district
homes compared with hundreds of others slated for renovation or demolition.

"Of all the homes on the city's condemned structures list,
there are only about six that are within a historic district," he said at the City
Council meeting Aug. 13. "I think that's pretty good."

Contact Will Forgrave at wforgrav@mlive.com or
517-262-7554. Follow him on Twitter at @WillForgrave.